What are the sales partner types?

Understanding the various types of sales partners is essential for tech SMEs looking to build a diverse and effective sales partner network. Here's a breakdown of the different types, their strengths, and how to leverage them:

1. Value-added resellers (VARs):

- Strengths: VARs not only sell your product but also provide complementary services such as installation, customization, and support. They are ideal for complex solutions that require ongoing customer interaction.

- Example: A software company might partner with a VAR that offers cloud migration services. The VAR can bundle the software with their services, making it a more comprehensive offering for the customer.

2. Referral partners:

- Strengths: Referral partners introduce potential customers to your company in exchange for a commission. They are typically industry influencers or companies offering complementary services.

- Example: A digital marketing agency refers its clients to a CRM software provider. The agency earns a commission on any resulting sales, while the CRM provider gains access to new prospects.

3. Distributors:

- Strengths: Distributors purchase products in bulk and resell them through their network of resellers. They are suitable for tech products that need rapid market penetration.

- Example: A hardware manufacturer might work with a distributor to get their product into multiple retail stores across a region, significantly expanding their reach.

4. System integrators:

- Strengths: System integrators combine your product with other technologies to create a complete solution. They are valuable for products that must fit within broader IT ecosystems.

- Example: A cybersecurity software vendor partners with a system integrator who combines their solution with a firewall and other security products to offer a comprehensive IT security package.

5. Affiliate partners:

- Strengths: Affiliate partners promote your product online and earn a commission on sales generated through their referral links. This is common for digital products and services.

- Example: A SaaS company partners with bloggers and industry websites to promote their software. Each sale through the affiliate's link earns them a percentage of the revenue.

6. Strategic alliances:

- Strengths: Strategic alliances involve partnerships between companies with complementary products or services, working together to achieve mutual goals.

- Example: A cloud storage provider forms a strategic alliance with a software development firm. They co-market their solutions, offering customers a seamless experience from storage to application deployment.

Action step: Evaluate your product offering and market needs to determine which partner types will best help you achieve your growth goals. Building a mix of partner types can diversify your market approach and reduce dependence on any single channel.

By understanding these different partner types and how they align with your business, tech SMEs can create a balanced sales partner network that drives growth from multiple angles.